SABIC signs deal to import US shale gas for UK petrochemical feedstock
4/21/2015 12:00:00 AM
Saudi Basic Industries Corp. (SABIC) has signed an agreement to use shale gas imported from the US at its Teesside petrochemical complex in Britain, acting CEO Yousef Abdullah al-Benyan told news agency Reuters.
"In fact we did sign the contract," Benyan told Reuters, according to the report. "We have not yet agreed with the supplier to publicly announce it, but we did firm up a contract for gas supply."
The CEO declined to name the supplier.
He said the timing and other details of the project, which he described as the first use of shale gas exported from the US Gulf in Britain, should be available by next quarter, according to the Reuters report.
"It is going to meet our full demand for the next 10 years and is renewable beyond 10 years," Benyan said.
SABIC had previously it was looking at investment opportunies abroad, citing scarce local supplies. Last year, the company said it planned to upgrade its Teesside cracker to capitalize on US shale opportunities.
Benyan also told Reuters that SABIC was still considering a plan to build a crude-to-chemicals, without first having to refine the oil. That proposal was first announced by oil minister Ali al-Naimi in early 2014.
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